managed exchange rate rules can help to alleviate problems of both indeterminacy and expectational instability, yet these …

remains indeterminacy indexed by an arbitrary probability measure over the set of states of the world. With an interest rate … policy, and only if the asset market is complete, indeterminacy is nominal: it affects prices, but not the allocation of … resources at equilibrium; with a money-supply policy, the indeterminacy is real. Portfolio policy sets the portfolio of assets …

Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is … indeterminacy. Our result is based on the fact that the no-shirking condition with marginal utility ofw ealth kept constant is …

redistributed across households in steady state. Inequality leads to equilibrium indeterminacy and undermines the theoretical …

conditions for indeterminacy that are easy to implement and we show that the necessary and sufficient condition for determinacy … indeterminacy in a passive regime may spill over to an active regime no matter how active the latter regime is. As a result, a …

sticky, and the less competitive firms are, the economy is likely to exhibit indeterminacy even if monetary policy is active. …